Here's how you can proactively prevent future ERP failures.
Understanding ERP systems is crucial to preventing failures. Enterprise Resource Planning (ERP) is a suite of integrated applications that an organization can use to collect, store, manage, and interpret data from many business activities. While ERP can significantly improve efficiency, its complexity means that failures can be costly. By taking proactive steps, you can minimize the risk of these failures and ensure your ERP system supports your business effectively.
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Bob BucySAP Professional | Warehousing & Logistics | Supply Chain Management | Life Sciences | Education | ASUG Carolinas…
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Charlotte WilsonERP Divisional Manager - Connecting the finest ERP professionals with global business leaders. Successfully working…
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Amit HelaooDirector | Principal Consultant | IFS Projects, HCM Expert | Solutions Architect
Comprehensive training is vital for preventing ERP failures. Ensure that your team understands how to use the system correctly. This means investing in thorough training sessions that cover all relevant modules and processes. Regular refresher courses can also help to maintain high levels of competency and ensure that any updates to the system are understood and integrated into daily operations.
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Charlotte Wilson
ERP Divisional Manager - Connecting the finest ERP professionals with global business leaders. Successfully working with companies worldwide.
Ensuring your team understands the system fully requires investing in thorough training sessions covering all relevant modules and processes. Regular refresher courses are equally important to maintain high competency levels and to keep the team updated on any system changes, thus integrating new features smoothly into daily operations. This ongoing education helps mitigate risks, enhances user confidence, and maximizes the system's effectiveness.
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Amit Helaoo
Director | Principal Consultant | IFS Projects, HCM Expert | Solutions Architect
I've seen too many implementations falter due to poor user buy-in and lack of know-how. That's why I'm adamant about investing in thorough, hands-on training tailored to each client's processes. We run immersive sessions covering every module, troubleshoot real-world scenarios, and ensure users are comfortable before go-live. But training doesn't stop there - we provide refreshers whenever needed, so teams stay sharp on new features and updates. An ERP is only as powerful as the people using it effectively. Proper training is mission-critical for extracting maximum value.
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Victor Pang Kin Lan, MBA, MEng
Retired Manager & Lecturer
ERP user training is important to avoid ERP failures related to functional issues like inaccurate reporting and security vulnerabilities. When approvals and transactions are completed on time and correctly, there is no business process bottleneck and the real-time and accurate data provides reliable reports and analytical insights for better cross-functional collaboration and decision-making. By educating and keeping employees informed about ERP security issues, they can access and use the ERP system with a behavior which cannot be exploited by cybercriminals to launch cyber attacks.
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Fabricio Amorim
Arquiteto de Transformação Digital | Líder e Especialista em ERP | Autoridade em Gerenciamento de Projetos e Mapeamento de Processos | Especialista em Transformação de Processos Empresariais
The importance of training people to avoid failures when implementing an ERP system lies in training users to understand and use the system effectively. This not only reduces the incidence of operational errors, which can lead to critical failures, but also ensures faster and more efficient system adoption, maximizing return on investment. Furthermore, well-trained users are able to resolve small issues autonomously, reducing dependence on technical support and contributing to the continuity and stability of business processes. In essence, training is a critical component to the success of ERP implementation.
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Bob Bucy
SAP Professional | Warehousing & Logistics | Supply Chain Management | Life Sciences | Education | ASUG Carolinas Chapter Chair
I agree completely that good companies and leaders will encourage training for their employees and provide time and financial support. The reality is that most don't, and you own your career. All of us need to prioritize learning with or without support or motivation from our employers. There are plenty of free or low-cost options for learning, and your most valuable asset is time. You don't have to spend every waking moment in an online course or book, but it will mean some decisions between study or Netflix to further your career.
Conducting regular audits of your ERP system can help identify potential issues before they escalate. This involves reviewing system processes, data accuracy, and user activities. By doing so, you can spot any discrepancies or inefficiencies early on and take corrective action. Audits also encourage accountability among users, as they know their interactions with the system are being monitored for quality and accuracy.
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Amit Helaoo
Director | Principal Consultant | IFS Projects, HCM Expert | Solutions Architect
Auditing your ERP system is like giving your operations a regular health check-up. Over years of implementations, I've seen how small issues can snowball into major disruptions if left unchecked. That's why I advocate for systematic audits that leave no stone unturned - reviewing processes, validating data integrity, monitoring user activities. It's about spotting red flags early before they become chronic pains. But audits do more than just catch problems. They drive accountability. When users know their actions are being reviewed, they're more diligent about following best practices. I've seen audits motivate teams to up their game on data entry, process adherence, and system hygiene.
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Charlotte Wilson
ERP Divisional Manager - Connecting the finest ERP professionals with global business leaders. Successfully working with companies worldwide.
By reviewing system processes, data accuracy, and user activities, you can detect discrepancies and inefficiencies early, allowing for timely corrective action. Regular audits also promote accountability among users, as they are aware their interactions with the system are monitored for quality and accuracy. This proactive approach helps maintain the system's integrity and efficiency, ensuring optimal performance and reliability.
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Fabricio Amorim
Arquiteto de Transformação Digital | Líder e Especialista em ERP | Autoridade em Gerenciamento de Projetos e Mapeamento de Processos | Especialista em Transformação de Processos Empresariais
Regular auditing of your ERP system is crucial to ensure its efficiency, security and compliance with applicable regulations. It allows you to identify and correct operational failures, security vulnerabilities and deviations in business processes before they become larger problems. Furthermore, the audit helps to ensure that the system is aligned with the company's strategic objectives, optimizing the return on investment. By providing insights into the use of the system, the audit enables informed decision-making for continuous improvements, contributing to the sustainability and growth of the business.
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Chrystèle Grand-Clément
PMO, project manager officer - ERP financial consultant
Set up tools to monitor the performance of your ER system identify potential problems before they become major breakdowns. Establish a regular maintenance schedule for your ERP. Use data analysis techniques to identify trends and patterns of behaviour that could indicate impending problems. This can include analysing error logs, usage reports and past performance. Identify potential risks such as security breaches, performance bottlenecks or software incompatibilities, and take steps to mitigate them before they become major problems.
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Miguel LLorca Gómez
Global CIO & Digital Transformation Director @ Grupo Torrent | Microsoft Regional Director, Dual MVP & MCT | Enterprise Architect, Technology Strategist & Speaker
Regular audits are crucial for maintaining ERP health. Schedule periodic reviews to examine system processes, data integrity, and user activities. This proactive approach helps uncover discrepancies and inefficiencies early, allowing for timely interventions. Audits also foster a culture of accountability, as users understand their interactions are continuously monitored for compliance and accuracy. In my experience, these audits not only enhance system reliability but also boost user confidence in the ERP’s capabilities, ultimately preventing costly failures.
Keeping your ERP system up-to-date is crucial for avoiding failures. Software updates often include critical patches that fix known issues and vulnerabilities that could cause system breakdowns. By staying current with updates, you're not only improving functionality but also protecting your system from potential threats that could lead to significant downtime.
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Amit Helaoo
Director | Principal Consultant | IFS Projects, HCM Expert | Solutions Architect
Keeping your ERP system updated is a non-negotiable for avoiding crippling failures and downtime. In my experience, companies that fall behind on updates are playing with fire. Software vendors release patches and upgrades for a reason – to fix known vulnerabilities and issues that could bring operations to a grinding halt. I've seen the consequences firsthand when clients neglect updates. A minor bug can quickly spiral into a system-wide meltdown, costing businesses dearly in lost productivity and recovery efforts. It's a harsh lesson that reinforces the importance of proactive patch management.
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Charlotte Wilson
ERP Divisional Manager - Connecting the finest ERP professionals with global business leaders. Successfully working with companies worldwide.
Regularly updating your ERP system is vital to prevent failures. Updates often contain important patches that resolve known issues and security vulnerabilities, which can otherwise lead to system malfunctions. Keeping the system current not only enhances its functionality but also shields it from potential threats, minimizing the risk of substantial downtime. Consistent updates ensure your ERP system remains robust and secure.
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Victor Pang Kin Lan, MBA, MEng
Retired Manager & Lecturer
Regular ERP system updates fix functional and technical bugs including security vulnerabilities to ransomware and other cyber attacks which can make ERP data inaccessible or unusable. It must be ensured that any required intervention related to existing ERP customization code during the ERP update will not delay its successful completion beyond the maximum allowable downtime for the firm.
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Fabricio Amorim
Arquiteto de Transformação Digital | Líder e Especialista em ERP | Autoridade em Gerenciamento de Projetos e Mapeamento de Processos | Especialista em Transformação de Processos Empresariais
Regularly updating the ERP system is essential to maintain the company's security, efficiency and competitiveness. These updates guarantee protection against new security vulnerabilities, introduce functional improvements and ensure compatibility with the latest technologies and regulations on the market. Furthermore, keeping the system updated allows the company to take advantage of new features and optimizations that can improve business processes, increase productivity and offer a competitive advantage in the market. In short, regular updates are essential to maximize your return on ERP investment and sustain business growth and innovation.
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Eid Mostafa, MBA
𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿 | MBA Corporate Finance | IMA CMA P1, FP&A | ACCA DipIFR,FinTech, IA, BV & PFM | CFA IF | CFI FMVA, CBCA, CMSA, FPWM & BIDA | GAQM CPTM & CFM
Keeping your ERP system updated is essential. Updates fix security vulnerabilities, introduce new features, and address bugs, all of which improve functionality and prevent disruptions. They also ensure compatibility with other systems. Regularly updating your ERP is an investment in its overall health and effectiveness.
Regular data backups are a safety net against ERP system failures. Should your system encounter an issue, having up-to-date backups ensures that you can restore your data and resume operations with minimal disruption. Establish a routine backup schedule and test your backup systems periodically to confirm that data can be recovered effectively when needed.
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Charlotte Wilson
ERP Divisional Manager - Connecting the finest ERP professionals with global business leaders. Successfully working with companies worldwide.
In the event of an issue, up-to-date backups enable you to restore data quickly and continue operations with minimal disruption. It's important to establish a routine backup schedule and periodically test your backup systems to ensure data can be recovered effectively when necessary. This proactive approach safeguards your business continuity and data integrity.
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Fabricio Amorim
Arquiteto de Transformação Digital | Líder e Especialista em ERP | Autoridade em Gerenciamento de Projetos e Mapeamento de Processos | Especialista em Transformação de Processos Empresariais
Backing up ERP system data is vital for business continuity, protecting the company against data loss due to hardware failures, human error, cyber attacks or natural disasters. Backups ensure that, in the event of any incident, critical data can be quickly restored, minimizing operational interruptions and financial losses. Furthermore, keeping backups up to date and secure is an essential part of risk management and regulatory compliance, ensuring that the company can maintain its operations and legal responsibilities without setbacks.
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Amit Helaoo
Director | Principal Consultant | IFS Projects, HCM Expert | Solutions Architect
Regular data backups are the ultimate insurance policy against ERP disasters. I've witnessed firsthand how a single system failure can bring operations to a screeching halt without proper backups in place. That's why I ingrain a "backups-first" mentality with every client engagement.
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Victor Pang Kin Lan, MBA, MEng
Retired Manager & Lecturer
Storage disk failure can be the most common cause of on-premise ERP system failures unless there is RAID 5 or 6 protection with prompt replacement of any faulty disk. This can be explained by the fact that an ERP system is used for many years. Therefore, a reliable backup and recovery system is essential. There must be a daily ERP data backup. An ERP system backup and a full system backup including the operating system can be done twice yearly or as soon as the ERP or operating system is updated, upgraded or maintained successfully. These backups need to be restored to the test environment for ensuring that they can be used whenever needed for recovery in the production environment.
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Miguel LLorca Gómez
Global CIO & Digital Transformation Director @ Grupo Torrent | Microsoft Regional Director, Dual MVP & MCT | Enterprise Architect, Technology Strategist & Speaker
Regular data backups are crucial for mitigating ERP system failures. By maintaining up-to-date backups, you ensure that operations can quickly resume after an issue. Establish a routine backup schedule and regularly test the recovery process to confirm data integrity and accessibility. In my experience, robust backup protocols provide peace of mind and a reliable safety net, allowing businesses to recover swiftly from disruptions, minimizing downtime and protecting critical information.
Implementing a risk management strategy for your ERP system can help you anticipate and mitigate potential failures. This involves identifying possible risks, assessing their impact on your operations, and developing contingency plans. By preparing for various scenarios, you can respond quickly if an issue arises, reducing the potential damage to your business processes.
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Charlotte Wilson
ERP Divisional Manager - Connecting the finest ERP professionals with global business leaders. Successfully working with companies worldwide.
Implementing a risk management strategy for your ERP system is paramount for anticipating and mitigating potential failures. This entails identifying risks, assessing their impact, and crafting contingency plans. By preparing for various scenarios, you can swiftly respond to any issues, minimizing damage to your business processes. Proactive risk management ensures operational resilience and business continuity in the face of challenges.
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Eid Mostafa, MBA
𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿 | MBA Corporate Finance | IMA CMA P1, FP&A | ACCA DipIFR,FinTech, IA, BV & PFM | CFA IF | CFI FMVA, CBCA, CMSA, FPWM & BIDA | GAQM CPTM & CFM
Risk management is a crucial aspect of preventing ERP failures. Here's how you can expand on this point: - Types of Risks: Briefly list common ERP system risks such as data security breaches, integration issues, system downtime, and user errors. - Risk Assessment: Explain that risk assessment involves evaluating the likelihood and severity of each risk to prioritize mitigation efforts. - Contingency Plans: Highlight the importance of developing contingency plans that outline specific actions to take in case a risk materializes. This could involve data recovery procedures, backup systems, & alternative workflows. By incorporating these details, you can provide a more comprehensive understanding of how risk management safeguards ERP systems.
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Amit Helaoo
Director | Principal Consultant | IFS Projects, HCM Expert | Solutions Architect
Implementing a robust risk management strategy is essential for safeguarding your ERP investment. The key is anticipating a wide range of "what-if" scenarios and having actionable response plans at the ready. That way, if an ERP disruption does occur, the organization can rapidly mobilize, contain the damage, and restore normal functioning with minimum downtime or data loss.
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Fabricio Amorim
Arquiteto de Transformação Digital | Líder e Especialista em ERP | Autoridade em Gerenciamento de Projetos e Mapeamento de Processos | Especialista em Transformação de Processos Empresariais
Having effective risk management in ERP projects is crucial to anticipate, identify and mitigate potential problems that could compromise the success of the project. This proactive approach allows the company to minimize disruptions, avoid cost overruns and schedule delays, ensuring the project meets quality, time and budget expectations. Furthermore, solid risk management contributes to the trust of project stakeholders, improving decision making and allocating resources more efficiently. In short, it is an essential strategy to maximize the chances of success of the ERP project, aligning it with the company's strategic objectives.
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Miguel LLorca Gómez
Global CIO & Digital Transformation Director @ Grupo Torrent | Microsoft Regional Director, Dual MVP & MCT | Enterprise Architect, Technology Strategist & Speaker
A solid risk management strategy is key to preventing ERP failures. Start by identifying potential risks, from technical glitches to user errors, and assess their impact on your operations. Develop contingency plans for each scenario to ensure swift responses when issues arise. Regularly update these plans as your business evolves. In my experience, proactive risk management not only mitigates potential damage but also builds organizational resilience, allowing for quick recovery and sustained business continuity.
Encouraging user feedback is a proactive way to prevent ERP failures. Users are often the first to notice when something isn't working correctly. By creating an environment where they feel comfortable reporting issues, you can address problems promptly. Regularly soliciting feedback also shows users that their experience is valued, which can lead to increased engagement with the system.
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Manjula Gowrishankar
Executive Coach | Strategist for Enterprise wide HCM Deliverables | Innovative Solutions | Technical & People Leadership | Technology Implementation & Transformation | Automation & Modernisation of HCM Program
There are many ways to manage the user feedback. Ensure that the organisation / Enterprise process followed to capture and maintain the backlog. Assessing the feedback provided is mandatory. The feedback provided may range from fixing a small issue within the ERP to executing large program of work. Transparency must be provided to the user community about the next steps to address the feedback. For any fixes that can be deployed by ERP teams, a tentative schedule for delivery should be shared and request for resource commitments for testing (if required)
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Charlotte Wilson
ERP Divisional Manager - Connecting the finest ERP professionals with global business leaders. Successfully working with companies worldwide.
Users are typically the first to detect issues, so fostering an environment where they feel comfortable reporting problems is essential. Regularly soliciting feedback not only enables prompt issue resolution but also demonstrates that user experience is valued, fostering increased engagement with the system. This collaborative approach enhances system functionality and user satisfaction, ultimately contributing to the system's success.
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Deepal Ratnayaka
Director at AG Consultancy and Apps | Forging the Path for AI Enhanced SAP Enterprise Asset Management Solutions
This method is useful for identifying hidden issues with ERP usage. However, the feedback process needs some improvements. First, there should be a structured system to review feedback before it gets to ERP managers or consultants. Also, it's important to have a clear way to prioritize feedback and a method to track and report what actions were taken on each piece of feedback. Many organizations have 'local habits' that may seem like ERP issues but are actually related to processes or people. Addressing these issues should happen alongside fixing ERP gaps. This is a big part of ERP adoption as well unfortunately often overlooked.
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Miguel LLorca Gómez
Global CIO & Digital Transformation Director @ Grupo Torrent | Microsoft Regional Director, Dual MVP & MCT | Enterprise Architect, Technology Strategist & Speaker
Encouraging user feedback is a proactive measure to prevent ERP failures. Users, being on the front lines, often spot issues first. Create a welcoming environment for reporting problems and regularly solicit their input. This approach allows for prompt issue resolution and demonstrates that their experience is valued, fostering greater engagement and system proficiency. In my experience, integrating user feedback into ERP management enhances system reliability and user satisfaction, leading to smoother operations and fewer disruptions.
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Teddy Herryanto
Helping people and business to have a better Business Central. Dynamics NAV & BC Techno Functional Consultant | Business Analyst | IT Manager
Talk to your users and get their feedback as early as possible. This will help you get to know your users and build trust with them. ERP is not just about technology and systems but also users and processes. Incorporating User Feedback will be a key component of a successful ERP implementation.
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Bob Bucy
SAP Professional | Warehousing & Logistics | Supply Chain Management | Life Sciences | Education | ASUG Carolinas Chapter Chair
Learn from the mistakes of others, especially in the area of implementation. There are many well-known stories of ERP failure with lessons to be learned, and root causes including excessive customization, ineffective organizational change management, or lack of executive engagement and support. The late Dr. Michael Hammer's seminal 1998 lecture on Success with SAP remains the gold standard if you can find a copy of the video (it's been out of print for quite some time). I wish I had been able to watch it before my first project.
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Matt Parkin, CAPM®
Scaling 8 & 9-figure Brands With Fulfil (eCommerce ERP) 🛒 | Partnerships 🤝 | LinkedIn Consulting ✍️ | Top Voice 📣 | Speaker 🗣️ | 4x Founder 🧩 | Career Coach & GTM Advisor 📈 | FoundersBeta 30 Under 30 🚀
Gathering requirements across departments and involving them in the ERP evaluation process is a great way to reduce risk before any implementation.
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Muinde Lewis
Dynamics Nav/Business Central Tech Functional Consultant
User Involvement. Involve all stakeholders from the start, users feel ownership of a system they have journeyed with. User Acceptance Testing(UAT) This can be as iterative as possible and try to resolve most of the issues. Training: Have the Champions train the end users, this builds trust and ownership. The three key stages are very key to a success/failure of any ERP Implementation.
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